BasuNivesh now available in it’s own domain www.basunivesh.com from 22nd June 2012.

Few days back I came across the question from one of my friend and client who is interested to purchase land and that land is of B Khata. He asked me is it good to have this property with B khata and what is the difference between A Khata and B Khata. So just thought to write up on this issue.

First let us look at what is meant by “Khata” according to BBMP (Bruhat Bangalore Mahanagara Palike). Khata is an account of assessment of a property, recording details about your property such as size, location, built up area and so on  for the purpose of payment of property tax. It is also a kind of identification of the person who is primarily liable for payment of tax.  It is required when you require a building license, trade licence or loan from banks or any other financial transactions. It is mandatory for all property owners to pay property tax, hence you need to have khata.

Now difference between Khata and Title Deed is, khata is an account of assessment of a property for payment of tax only. Hence khata will not confer ownership of property. Whereas Title Deed is the valid document which confer ownership on property.

Let us look at the reasons behind the origin of A Khata and B Khata lands. In 2007, those under the seven City Municipal Councils (CMC) of Bommanahalli, Dasarahalli, Krishnarajapuram, Raja Rajeshwari Nagar, Mahadevapura, Byatarayanapura, Yelahanka, one Town Municipal Council (TMC) of Kengeri and 110 villages, were brought under the fold of the Bangalore Mahanagara Palike (BMP). Following this expansion and creation of the Bruhat Bangalore Mahanagara Palike (BBMP), those who did not have appropriate approval from the concerned land development authority and yet to come under the ambit of the Palike were issued an acknowledgment which was in common parlance known as ‘B’ Khata.

However, in reality, ‘B’ Khatha does not exist. Property identification numbers are entered into a register called as  ‘B’ register stating that the civic agency has been paid its dues by the property owners. For citizens in need of an approval from the appropriate land development authority but have a Deputy Commissioner (DC) conversion, the BBMP re-introduced Betterment Charges which will entail people to take a Khata on their property. This is how B Khata originated in the mind of property owners but not legally 🙂

Now the disadvantages of having B khata is that, you will not get building license, trade licence or loan from banks or any other financial transactions. Hence it is big hurdle to have B Khata land. Now what are the ways of converting B Khata land to A khata?

By paying betterment charges you can convert B Khata to A Khata. But you will face lot of hurdles, few of them are as below.

1) You should have DC converted property

2) Tax must be paid till date

3) Betterment charges for the conversion property need to paid to BBMP.

So the solution is to avoid purchasing B Khata properties and prefer A Khata to have comfortable position in dealing future financial transaction hurdles.

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